We all know that there is a hard limit to the number of bitcoins that could ever be minted. That limit is almost 21 million BTC (minus a few Satoshis). Long term holders hope that this limit will cause the values of their coins to go up considerably due to increasing demand.
However, there is no limit to the number of shit coins that can be invented. In fact the ETH shit coin now has a market cap that is of the same order of magnitude as BTC. Furthermore it is an inflationary coin.
If many people move their capital to these alts won't this negate the benefits of the 21 million BTC limit for Bitcoin holders?
Not really. Shitcoins are just used to increment BTC holdings, so the marketcaps on shitcoisn is just temporal and eventually goes back to bitcoin.
Even the biggest projects like Ethereum are just eventually going to fail and this wealth will go back to the original blockchain.
When sidechains kick in it's pretty much over for altcoins even tho I think they will exist because people love speculation.